TAX CALCULATOR

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Advisory: Information relates to the law prevailing in the year of publication/ as indicated. Viewers are advised to ascertain the correct position/prevailing law before relying upon any document.

Disclaimer: The above calculator is only to enable public to have a quick and an easy access to basic tax calculation and does not purport to give correct tax calculation in all circumstances. It is advised that for filing of returns the exact calculation may be made as per the provisions contained in the relevant Acts, Rules etc.

A Cautionary Story: The Danger of a Small Mistake

Mr. Gupta, a diligent salaried employee, always filed his own taxes. One year, he had some extra income from a small freelance project. While calculating his tax, he made a small error: he forgot to add this extra income to his "Net Taxable Income". The amount was not huge, so he didn't think it would make a big difference. However, this small addition pushed his total income into a higher tax slab and also made him liable for a surcharge which he wasn't aware of.

A few months later, he received a notice from the Income Tax Department for underpayment of tax, along with interest and a penalty. The total amount he had to pay was surprisingly high, all because of that one small oversight. This story is a reminder that tax laws are precise. Using a reliable tax calculator helps in cross-checking your calculations and ensures that all components like surcharge and cess are correctly applied, saving you from future trouble and financial loss.

FAQs

What is an Assessment Year (AY)?

An Assessment Year is the year immediately following the financial year in which the income is assessed. For example, for the Financial Year (FY) 2023-24 (income earned from April 1, 2023 to March 31, 2024), the Assessment Year is 2024-25.

What is relief under Section 87A?

It is a tax rebate available to resident individuals whose net taxable income does not exceed a certain limit (e.g., ₹7 lakh in the New Regime for AY 2024-25). If you are eligible, your tax liability can become zero.

What is Surcharge and Cess?

Surcharge is an additional tax levied on taxpayers with high incomes (e.g., above ₹50 lakh). Health and Education Cess is another tax levied on the income tax amount (including surcharge, if any), currently at 4%, to fund health and education initiatives.

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